Sina's Q2 profit more than doubles

BambiFrancisco

SAN FRANCISCO (CBS.MW) - Sina Corp., which runs the popular Chinese web site, Sina.com, said late Tuesday that second quarter earnings more than doubled, topping estimates as non-advertising revenue helped drive sales up 89 percent.

But the company predicted that third quarter sales and earnings per share would come in lower than analysts had targeted.

Sina
SINA, -0.25%
said it earned $18 million, or 31 cents per share, in the second quarter, compared to a profit of $7.1 million, or 14 cents per share, in the year-ago period. Excluding certain items, Sina earned 33 cents vs. the 31 cents analysts had expected.

Quarterly sales grew 89 percent to $49.2 million as non-advertising revenue, which account for 68 percent of total sales, more than doubled. But analysts had already expected revenue to be $49 million. Non-advertising sales come from services that Sina sells to its customers, such as the ability to send short messages via mobile devices.

In the third quarter, Sina said it expects sales to essentially be flat quarter-over-quarter. Sina expects to generate between $49 million and $50 million. But analysts expected Sina to generate $52.9 million in revenue in the current quarter. Sina also expects to earn a per-share profit, excluding certain items, of 29 cents to 30 cents. Analysts expected Sina to earn 33 cents per share.

Shares of Sina traded higher in after-hours action mostly because the stock had already been under pressure since NetEase
NTES, -0.74%
warned earlier this month. Sina shares fell more than half a percent to $24.23 in regular trading. The stock had traded at $30 at the start of the month.

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